Question

# With compound interest, a sum of money amounts to Rs. 1,452 in 2 years and Rs. 1,597.20 in 3 years. What is the rate of interest per annum?

A
9%
B
12%
C
10%
D
None of these

Solution

## The correct option is A 10%Suppose $$principal =Rs. P$$ and $$rate =R$$%Given $$A = Rs. 1 ,450$$ for $$N =2$$$$A = Rs. 1,597.20$$ for $$N =3$$$$\therefore P\left (1+\frac {R}{100}\right )^2=1,452$$$$P\left (1+\frac {R}{100}\right )^3=1,597.20$$Dividing (2) by (1), we get$$1+\frac {R}{100}=\frac {1,597.20}{1,452}$$$$\frac {R}{100}=\frac {1,597.20}{1,452}-1=\frac {145.20}{1,452}=10$$%Mathematics

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